EUR/USD: major events that could affect the forex this week

The United States has a new president. This past weekend, Joe Biden won Pennsylvania, and with it the minimum number of votes needed to win the presidency.

However, this news did not have much impact on the financial markets. Little has changed since, which means that the result was already taken into account. Therefore, forex traders can return to the usual financial events for the coming week and for the rest of the remaining weeks of this year.

What to look for this week

The main event of the trading week is the ECB Central Bank Forum. A few years ago, the ECB copied the Fed's model and started holding an annual forum in Sintra, Portugal, just as the Fed does in Jackson Hole. Only this year, due to the virus situation, the event is taking place online.

The Reserve Bank of New Zealand (RBNZ) is expected to release its decision on interest rates and monetary policy on Wednesday. The market is not expecting anything new from the RBNZ, but looking at the Reserve Bank of Australia's (RBA) stimulus package released last week, the RBNZ may surprise the markets.

The CPI (Consumer Price Index - Inflation) in the US on Thursday will affect USD pairs. The market is expecting a further decline in the MoM, so pressure is building on the Fed to take action at the next meeting.

Speaking of the Fed, it did not change its monetary policy at last week's meeting for the simple reason that the country's attention was elsewhere. However, like the ECB, the Fed is expected to further ease monetary conditions next month.

With that, expect that any news related to the transfer of power to the US will also affect the markets. It is unlikely that Trump will leave the oval office without a fight until the last day of his glorious presidency.